Online off-the-plan enquiries surge ahead of open house ban - Curated and collated by Matt George, Urban Activation
Matthew George
Property Sales and Marketing Director Over 5000 apartments sold across Australia and New Zealand - $4Billion
The Federal Government announced the ban on open-for-inspections from midnight 25th of March, 2020 amid the coronavirus crisis, but potential off-the-plan buyers are already heading online to compensate.
Many agents have already moved towards private inspections and digital walk-throughs in a bid to stay connected with buyers, as fewer people visit physical sales suites.
Here’s how some agents are dealing with the rapidly shifting environment:
Builders and developers have recorded a spike in online enquiries
Director of sales and marketing at Pace Development Group, Ashley Bramich, says, while their display suites have been quieter, there has been an uptick in online interest.
“With more people working from home, we have seen our website traffic increase,” he says. “There have been rises in page visits, engagement and time on site.”
Bramich says off-the-plan buyers are confident the COVID-19 crisis will be over once their new home is completed and ready to move into.
“Potential purchasers take the view that any property which settles in the next 12-18 months will remain a strong investment beyond the current environment,” he said.
“There has been an upturn of engagement with sales agents communicating via phone and email. [Buyers] are keen to engage and request VIP appointments to access the displays and still hear about incentives and offers on projects.”
Potential buyers have more time on their hands
Managing director – residential at Colliers International, Peter Chittenden, says self-isolation measures have given people more spare time to house hunt.
“As a result, we’re seeing off-the-plan enquiry pick up,” he said. “Last week that was up by 63%. However, our interactions and appointments in the sales suite have dropped by 33% in the last week.”
Chittenden says agents need to think “fundamentally different” in terms of how to best meet the needs of potential off-the-plan buyers.
“This means we need to come up with great videos and marketing material in the online tech space to arouse interest,” says Chittenden.
“Our team has begun to adopt new technologies. They even hold virtual appointments and open for inspections.
“The adoption of technologies in our workplace has meant that we can continue to service our clients and customers, especially those who have been impacted by the ongoing COVID-19 pandemic within Australia.”
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Investors may turn to property in times of uncertainty
Investors might be looking to property – rather than the stock market – as a safer place to park their money, Chittenden suggests.
Colliers International recently announced the sell-out of several projects, including Arkadia in Alexandria, by Defence Housing Australia.
“There will be difficult and hard times ahead,” Chittenden said. “But we anticipate that the appeal of property will only grow as we experience irregular volatility in other investment markets.”
The current economic rebound in China following its COVID-19 crisis could signal a potential increase in foreign investment interest in Australian property.
“Look at our currency at the moment – 57 cents to the US dollar,” says Chittenden. “If you’re in China, where the factory engines are turning over again, you’ve just saved 12% or more in the last few days on Sydney property that’s brand new.”
He says despite the COVID-19 crisis and its impact on the market, buyers should remain engaged in the property hunt. He encourages them to use the time to research so they can make an informed purchase before opportunities are missed.
“When the moment arrives when everyone knows they’re absolutely fine and there are no problems, it means they’ve probably missed the opportunity to capitalise on the risk and reward percentages,” says Chittenden.
“Anyone who bought in the GFC was incredibly well rewarded with increases of two or three times the value of their property.
“Outside of job security, which is significant, the fundamentals haven’t changed in the residential world. Once we get through this, I think the market will run hard.”
Matt George of Urban Activation says "The market has not slowed down for us, as we have projects completed that we are selling, we have projects in the pipeline that we are selling off the plan, and we have potential projects down the track that we are forward selling interest in"
To find out more about projects on offer via Urban Activation, contact Urban Activation at www.urbanactivation.com.au or Google Urban Activation.